Infosys gains 3% as board to consider share buyback proposal on August 19

The stock was up 3% at Rs 1,010 on BSE in early morning trade.

Infosys was up 3% at Rs 1,010 on BSE in early morning trade after the company said its board will meet on Saturday, August 19, to consider share buyback proposal.

“The board of directors of the Company will consider a proposal for buyback of equity shares of the Company at its meeting to be held on August 19, 2017,” Infosys said in a regulatory filing.

Infosys added that it was closing its trading window with immediate effect and that the window would reopen on August 22.

The Securities and Exchange Board of India (Sebi) has approved Infosys' share buyback and also offered a solution for participation by holders of the company’s American Depository Receipts (ADRs) and Global Depository Receipts (GDRs), the Business Standard reported. CLICK HERE TO READ FULL REPORT.

The cash-rich technology major had in April proposed to pay Rs 13,000 crore to shareholders through a buyback, but the proposal was tied in regulatory knots.

Thus far in the calendar year 2017, Infosys stock had underperformed the market by falling 3.3% as compared to 19% rise in the S&P BSE Sensex till Wednesday.

In past one year, most of the information technology (IT) majors, include Tata Consultancy Services (TCS), Wipro, HCL Technologies, MindTree and MphasiS had announced share buyback through tender offer.

Share buybacks typically improve earnings per share and return surplus cash to shareholders while also supporting share price during period of sluggish market condition.

	Buyback Schedule		Proposed Buyback		Price in Rs
Company	Open	Close	Amt(Rs.Cr)	Price(Rs.)	17/08/2017
Wipro	NA	NA	11000	320	290
Mindtree	18/08/2017	01/09/2017	270	625	468
Nucleus Soft.	16/08/2017	31/08/2017	117	350	281
HCL Technologies	NA	NA	3500	1000	864
TCS	NA	NA	16000	2850	2491
MphasiS	12/05/2017	25/05/2017	1103	635	587
Sasken Technol.	03/02/2017	16/02/2017	117.63	410	464
Hexaware Tech.	02/02/2017	15/02/2017	136.67	240	264
R Systems Intl.	07/11/2016	21/11/2016	19.5	65	40
eClerx Services	28/11/2016	09/12/2016	234	2000	1289
Infinite Comp	10/02/2017	23/02/2017	149.99	265	209
Source : CapitalinePlus